Crypto Prices Crash but These 3 Coins Could 10x
The global cryptocurrency market is in a bloodbath, with the total crypto market cap down over 12% from yesterday and the market cap of DeFi coins down more than 13%. Bitcoin fell more than 16%, breaking the yearly low in June and setting a new low of $17,114. Similarly, FTT fell by more than 85% before recovering to trade above $2.70.
The dramatic price action was caused by FTX's recent admission that the exchange was experiencing a liquidity shortage; the insolvency was so severe that Sam Bankman-Fried, the CEO, approved selling FTX to competitor cryptocurrency exchange Binance for an unknown amount.
Binance's sudden and unexpected planned takeover of longtime rival crypto exchange FTX will increase scrutiny of the asset class. CEO of Binance, Changpeng 'CZ' Zhao, tweeted on Tuesday that Binance has signed a "non-binding" letter of intent to buy FTX fully and that "FTX sought our help" due to a liquidity constraint.
The deal does not involve FTX's operations in the United States, and it is not clear if the market maker's venture capital section would also be acquired. Binance's spokeswoman did not immediately respond to a request for comment. A representative for FTX declined to comment, referring to CEO Sam Bankman-tweets.
Fried's Matt Lason, a chief investment officer of digital-assets-oriented Globe 3 Capital, expressed worry that FTX needed to be backed up, given that they were "the initial backstops" this summer for Celsius and Voyager Digital, both of which filed for bankruptcy.
Zhao remarked in a subsequent tweet, 'There is a lot to cover and will take some time.'
Instead of providing a statement, the FTX representative referred all questions to CEO Sam Bankman-Twitter. Fried's Globe 3 Capital's chief investment
Read more on cryptonews.com
